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Property transactions are set to get costlier from October 1 when the revised guidance values come into effect in Bengaluru.
Revenue Minister Krishna Byre Gowda on Tuesday said that guidance values will see an average 25-30% hike across the state.
The minister said the revision would help curb use of black money in property transactions. The government expects to mop up an additional Rs 2,000 crore from the revised guidance values.
Gowda told reporters that the revised guidance value will come into force in Bengaluru on October 1 while revised guidance value will be implemented in other districts in a phased manner after respective District Sub-Committees arrive on a consensus over fixing guidance value based on zones of their districts concerned.
Gowda affirmed that the state government has adopted cautious measures in increasing the guidance value based on the market price of land in a particular area.
“For instance, in an area like Electronics City, land prices are 500 times higher than the present guidance value. In such places, the state government has decided to increase the guidance value by 50%, while wherever land price is 200% more than the guidance value, there we have increased guidance value between 20 and 25% and wherever guidance value is on par with land value, the state has decided to increase the guidance value by just 10%,” he explained.
The minister also pointed out that the state government has also given powers to officials concerned to reduce or increase the guidance value on “case by case basis” wherever there is disparity between guidance value and the market price.
The minister said the delay in increasing guidance value is “in a way leading” to rise in black money transactions too, therefore, the state government decided to raise the guidance value to keep a check on such transactions.
He also said that there is law in the state that the guidance value should be on par with market value of the land. “Therefore, we actually cannot definitely say this as an increase in guidance value but at best it can be termed as setting the anomaly right,” he argued.
He also said that the state will call for objections on revision of guidance value and based on the opinion, the department will revise the guidance value too.
The minister said that as many as 10,000 to 12,000 properties are getting registered after the state implemented the Kaveri 2.0 technology successfully. “In one of the offices, as many as 140 properties were registered on a single day. As a result of this, the state has succeeded in generating Rs 800 crore revenue,” he explained.